First 3 days of the week has only a 72 pip trading range
The USDJPY non-trended last week. The EURUSD is starting week at least with a non-trending up and down trading range. The low to high trading range has only been 72 pips. The high was reached yesterday at 1.1900. The low was reached today at 1.1828. The pair currently trades between those extremes at 1.18615.
Admittedly, the week is only half over. So there is lots of time to get out of this quagmire. Nevertheless, should the up and down pattern continue, this would be the lowest trading range for 2020.
So what technical clues can we look to that might be a prelude to a break to the upside or downside?
The low price today did stall near its 200 hour moving average at 1.1832 (the low was once again 1.1828). The inability to break and got a lower in the Asian session, led to a rebound to the upside (bullish).
However when the price tested the 50% midpoint of the September trading range at 1.18811, sellers leaned and the price has rotated back to the downside. That is more bearish.
In between those extremes sits the 100 hour moving average currently comes in at 1.18543.
The move lower off the high today did dipped below that level after the retail sales report, but has held support so far in the current hourly bar. Watch for that level to be a barometer for bulls and bears intraday.
Stay above and get above the 50% retracement would target the topside trend line at 1.1895 and the high from yesterday at 1.1900 (look for the break higher). Move below and the 200 hour moving average would be the target at 1.1832 (look for an extension break lower).
For the time being, the buyers and sellers continue to battle it out between the two technical extremes.
